Wallaces Farmer, a Farm Progress publication, February 22, 2024
Our respected and valued customer, Doug Hensley, President of Hertz Real Estate Services, starts off a new monthly series on interest rates and their impact on farmland values. Gain valuable insights and understanding on how the undercurrent of interest rates effect our entire economy. Through its illustrated and educating content, readers will also acquire the less evident influence interest rates can have for investors and capital flow in the market. – How interest rates impact farmland values (farmprogress.com) Make sure to follow the series.
Prairie Farmer, a Farm Progress publication, February 21, 2024
Every five years, the Census of Agriculture Report is published by USDA’s National Agricultural Statistics Service. Its data tells a story, detailing and illustrating trends and shifts over time in the industry. Featured is an in depth view of Illinois’ agricultural demographics, economics, land use and activities from the recently published 2022 Census of Agriculture Report. Census reflects Illinois ag strengths, changes (farmprogress.com)
A positive growing trend around community is happening in our state of Nebraska and the entrepreneurial spirit and heart of their FFA students is the shining reason why! Learning to grow food to help their follow students and communities, volunteering at businesses that help provide community support, caring for cattle to provide meat for school lunches and fundraising efforts. They’ve even executed a successful business plan and are running a coffee shop! And yes, there’s even more inspiration found here – Through local food enterprises, FFA members serve their communities (agupdate.com)
Litchfield FFA Students harvest watermelon to donate to area schools and sold in local grocery stores.
Dakota Farmer, a Farm Progress publication, February 20, 2024
Delving into the rich history of our states, North and South Dakota, alongside the impactful legacy of President Theodore Roosevelt during President’s Day week. Recognized as the ‘Conservation President,’ his enduring influence is palpable in the Badlands of the Dakotas. From the iconic Mount Rushmore to the expansive 200 million acres of public lands, which include 150 million acres of national forests, his indelible mark on our nation’s landscape is undeniable. Learn more about his conservation impact here: https://bit.ly/3T8ji83
WHERE BUFFALO ROAM FREE: GARRETT RYMER/GETTY IMAGES
On February 13th – the USDA’s National Agricultural Statistics Service published their 2022 Census of Agriculture Report. The report points to the continuation of consolidation trends seen over the past few decades: farm numbers decreasing but farm sizes increasing. It’s visual graphs not only detail farm size statistics but also provide a Farmer Age Groups graph and findings. According to Secretary of Agriculture, Tom Vilsack, “This survey isn’t just about agriculture, it’s a map and a guide to a better and more open future.” This 5 minute read highlights some promising trends that are worth noting in our US ag industry. 2022 Census of Ag reports continued size and aging trends (farmprogress.com)
How interest rates could impact farmland values in 2024 – Prairie Farmer, a FarmProgress publication – February 12, 2024
A recent commentary from Prairie Farmer, outlines the variables that can come into play for farmland values, when it comes to the impact of interest rates and inflation. Although a recent Federal Reserve decision to hold interest rates steady has been said to be a beacon of stability, there are several outcomes that may weigh in differently on the impact it could have on farmland values. Click here to learn more – How interest rates could impact farmland values in 2024 (farmprogress.com)
From farmprogress.com, written by Alice in Dairyland’s Ashley Hagenow:
The diversity of Wisconsin’s agriculture industry is one of our greatest strengths. Let’s “dig up” some interesting information about Wisconsin-grown potatoes!
Last fall, I headed over to Alsum Farms and Produce in Adams, Wis., for a tour. Alsum states its story started “five decades ago in a 600-square-foot potato shed, with one man, Glenn Alsum, one vision, and a work ethic framed by dedication and service.”
Alsum Farms and Produce now has 600 times the original storage and production space, and 325 times the employees. The farm produces 200 million pounds of potatoes every year.
The beginning of our tour started at Alsum Farms’ Adams storage facilities, where we saw how potatoes are handled after they have been harvested from the fields and what it takes to store them – ensuring year-round availability of fresh, high-quality potatoes. Though Alsum stores potatoes by the thousands instead of in 5-pound bags, the same concepts apply to preserve storage quality.
According to the Wisconsin Potato and Vegetable Growers Association, you should always store potatoes in a cool, dark, well-ventilated place, but not too cold. You should never store them in your refrigerator, on your countertop, or in areas that get warm like next to the oven or under the sink. You should also keep your potatoes unwashed until you are ready to use them, as a wet potato will spoil quickly.
After the storage facilities, we headed over to “help out” with the harvest. Like a well-oiled machine, four tractors and a semitruck go through the field, harvesting in unison. As one semi fills with fresh potatoes, another one is close behind to take its place in line. Alsum’s fields are harvested each fall, and potatoes can be stored up until the following year’s harvest begins.
Wisconsin’s farmers grow six varieties of potatoes – russet, round white, round red, yellow flesh, blue and purple – providing consumers diverse choices for all their potato needs, even when shopping local. Wisconsin is the third-largest potato-producing state in the nation, behind Idaho and Washington.
The potential for lower farmland demand is largely driven by the fact that, “In 2023, interest costs on new farmland loans (blue line) surpassed the recent average annual appreciation in land values (green line) for the first time since 2001,” Kreitman wrote.
“From 2002 to 2022, growth in agricultural real estate values was well above the cost of financing, supporting demand for farmland,” Kreitman reported. “With interest costs now above average land value appreciation, farm operating profits will determine the magnitude of returns for financed land.”
However, farm operating profits could be low in the coming year, as farmdoc daily’s Nick Paulson and Gary Schnitkey reported last week in revised 2024 crop budgets, with “a reduction in the corn and soybean prices assumed for both 2023 and 2024 resulting in lower return and profitability projections” for farmers in Illinois.
“Current farmer return expectations are negative for both corn and soybeans across all regions for 2024 for cash rented land at average cash rent levels, suggesting cost adjustments will be needed in 2024 and beyond,” Paulson and Schnitkey wrote.
Farm bill update, new PLC reference prices in 2024 – FarmPress, a FarmProgress publication, January 26, 2024
While Congress still battles on the terms and passing of the Farm Bill, farmers received some good news and a little added help with the allowance increase of the 2024 reference prices, thanks to an escalator clause in the current farm bill.
